Semtech Expecting 2nd-Quarter Earnings to Drop
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Semtech Corp. in Newbury Park expects its second-quarter earnings per share to be 40% to 50% lower than first-quarter results, due to the Asian economic crisis and weak demand from the personal computer and automated test equipment markets.
The semiconductor company does not expect to meet analysts’ estimates for the second quarter. Five analysts had predicted earnings of 29 cents a share.
The company expects sales in the second quarter ending Aug. 2 to be about 15% below first-quarter sales. The company also will record a pretax charge of $2.5 million for restructuring.
Semtech reported operating income, excluding charges, of $4.5 million or 29 cents a diluted share on sales of $29.5 million in the first quarter ended May 3.
Semtech said its restructuring charge is for the consolidation of internal wafer fabrication capacity and the related write-off of certain assets.
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